Alarmingly, high energy costs are not only cutting the profits of domestic industrial companies, but also causing investments to move abroad. “Not all companies will leave immediately, but some locations are no longer wanted and can no longer be maintained,” says Monika Köppl-Turyna of EcoAustria.
What are the consequences of rising energy costs? “With the costs for CO₂ certificates, which make energy even more expensive, we are accelerating deindustrialization,” says Joachim Haindl-Grutsch, director of the Upper Austrian Industry Association. “Anyone who thinks that problems can be solved with a few wind turbines that we set up in Upper Austria is on the wrong track. International cooperation is necessary to secure the supply of green energy.”
Haindl-Grutsch speaks of a ‘cost problem’ in Austria, which also leaves its mark in a study by EcoAustria. A double-digit decline is forecast for investment in the country.
Price increases are not accepted
“Our customers will not accept price increases due to energy or labor costs,” said Thomas Bründl, head of silicone processor Starlim Sterner, which will continue to expand factories in Asia and North America.
And in Austria? “We will not give up our castle at the first headwind,” says Bründl. “But we have to make money, otherwise we will no longer exist tomorrow,” emphasizes Martin Zahlbruckner, CEO of specialty paper manufacturer Delfort from Traun.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
